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Risk Mitigation

When we think forestry, the risk that comes to mind first and foremost is fire. With the climate in New Brunswick being too cold for fires to initiate or spread for most of the year, this project is perfectly situated for fire to be a minimal concern. That being said, GWD’s plantations are spread across several different sites in the province, with each site having fire breaks in place to contain the unlikely event of fire to one small area. We also employ highly skilled forestry engineers and 24-hour surveillance, so that we can be on hand to deal with any incident as quickly as possible. As a client of GWD, should your trees be damaged or fail, for any reason, we hold a 30% reserve on all of our projects in order to replace any failed or damaged crop that may be sustained throughout the term of the investment.

Biology and natural hazards | PESTS AND DISEASES

The forestry engineers know exactly what to pay attention to in order to reduce the risks of pests and diseases, and how to rectify any problems that may arise immediately. In many parts of Brazil, the leaf-cutting ants present themselves as a pest, which is why you will see in our project galleries for Brazil that we do “ant combating” during the early stages of land preparation before planting, so that the previously degraded land is free of them.

Biology and natural hazards | WATER AND DROUGHT

Water is a vital resource in the establishment of successful crops. Where there is lack of sufficient rainfall, our irrigation systems take over the day to day supply of water to the crops. Our forestry engineers are always careful to monitor that there is enough water supplied to maintain quality of wood in the growing trees. The GWD Group understand that natural events can cause a small percentage of trees to be adversely effected and is our policy to replace free of charge, any and all trees effected, to ensure that our clients always receive the same number of quality trees as owned by them through their initial investment.

Currency | FOREIGN CURRENCY RISK

Whilst ensuring the future revenue from your Euro Investment, charcoal and timber sales are in the local currency of the country in which they are planted. That is: in Brazilian Real for our projects in Brazil and Canadian Dollars for our Canadian Projects. Your investment is reliant upon the future prices of these currencies.

There are three possible outcomes: Either the exchange rate of the local currency will remain at the same level, or it will increase, or it will weaken against the Euro. If the Euro strengthens against the local currency, the outcome would be that the actual return on investment (ROI) will decline when paid out in Euros. If the Euro weakens against the local currency then the actual return on investment will increase when paid out in Euros. So the underlying, long-term economic performance is reliant upon the strengthening or weakening of the Euro. This is promising in terms of investment when we compare the local economies of Brazil and Canada as being high up in the rankings of worldwide top performers, compared to the Euro Zone of different members with vastly different economic performances facing challenges in recent times. Which leads us to conclude that although there could be, it is highly unlikely that the Euro will strengthen to cause a significant decline in your return of investment (ROI). We recommend that you keep an eye on the Euro in the financial sections of Media Resources, such as The Financial Times.

Assets | PRE-SALE PERIOD OF TIME (LIQUIDITY)

As an investor you officially own the timber and it is recognized with a certificate sent to you upon completion of your initial investment payment. The investor has flexible transferable rights meaning you are free to sell your investment and / or re-invest at any time. The investor has the right to re-sell investments to any third party via our Exchange List Program in accordance to the terms and conditions of the agreement.